P25-Interpretation of Agreement

                        
Objective Form

25.1  This Agreement shall be construed under and in accordance with the laws
of the State in which the property is located, and all obligations of the
parties created hereunder are performable in _____________________ County,
______________________.

25.2  This agreement shall be interpreted and construed without reference to
Section headings which are added for convenience only.  References made to the
the male or female gender shall be construed as applicable to each.

Comment
     Ordinarily, contracts for the sale or exchange of real property are
governed by and enforceable in the state in which the property is located.  The
objective form recognizes this.





Alternatives
     In certain cases the parties to a contract for the sale of real estate may
alter the rule suggested above and maYy make the agreement governed by the laws
of another state.  This is, however, rare.
          "This Agreement is made and shall be construed and interpreted in
          accordance with the laws of the State of _______________________ (a
          state other than that in which the property is located)."
     Even rarer is a provision mandating that adjudication of disputes arising
under the agreement be held in a state other than that in which the property is
located.  Such a provision would have limited enforceability.
          "This Agreement shall be governed by, construed and judicially
          enforced under the laws of the State of ______________________."